Before You Retire

If you’re seriously considering retirement, you also should be seriously thinking about how to ensure that your financial future is as comfortable and stress-free as possible. Here are a few tips:

• Make the most of your remaining paychecks to save for retirement.
  
  Save as much money as possible – 10 to 20 percent of your annual income.
  Make use of employer-sponsored retirement plans and tax-advantaged Individual Retirement Accounts.
• Develop a plan to stretch your money through a long retirement.
  
  Consult with the Social Security Administration (call 800-772-1213 or go to www.socialsecurity.gov) or your accountant to learn how much Social Security and pension income you’d get each month if you "retire early" and how much more you would receive if you hold off on retirement.
  Discuss with a financial advisor how and when to withdraw money from your tax-deferred retirement acounts, such as employer-sponsored retirement plans and traditional IRAs.
  Periodically review your retirement portfolio to be sure it’s well-diversified.
  Consider a more conservative investment strategy than in the past so you can avoid losses to principles.

The above information is an excerpt taken from a new Federal Deposit Insurance Corporation (FDIC) publication titled, "Money Tips for All Ages: Your Finances at Different Stages in Life." The advice, in a special edition of the agency's quarterly FDIC Consumer News, can be read or printed online at www.fdic.gov/consumers/consumer/news/cnspr08.